Samuels Company has accumulated the following budget data for the year 2020.

1. Sales: 34,000 units, unit selling price $75.

2. Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 3hours at $12 per hour, and manufacturing overhead $6 per direct labor hour.

3. Inventories (raw materials only): Beginning, 10,000 pounds; ending, 15,000 pounds.

4. Raw materials cost: $5 per pound.

5. Selling and administrative expenses: $223,000.

6. Income taxes: 40% of income before income taxes.

Instructions

(a) prepare a schedule showing the computation of cost of goods sold for 2020.

(b) Prepare a budgeted income statement for 2020.